Staples and Office Depot in advanced talks over merger
Negotiations over a merger between Staples and Office Depot were at an advanced stage on Tuesday, according to sources cited by The Wall Street Journal.
Dow Jones I.A.
42,052.19
04:30 15/10/20
Nasdaq 100
20,033.14
12:15 01/11/24
OFFICE DEPOT
$2.35
02:00 30/06/20
Staples Inc.
$10.25
12:59 12/09/17
Target Corp.
$150.84
11:10 01/11/24
Wal-Mart Stores Inc.
$82.19
11:10 01/11/24
The two groups, which have combined annual sales of over $35bn and approximately 4,000 stores across the US, attempted to merge in 1997, only to see the deal blocked by the competition authorities.
Staples has a market value of about $11bn, while Office Depot, which took over sector peer OfficeMax in 2013, is currently valued at $4bn.
However, both groups have been shutting stores as on-line retail has grown increasingly popular.
Staples' North American same-store sales haven't increased since 2007, while Office Depot's haven't grown since the previous 12 months and both groups are suffering from competition from Wal-Mart and Target, which both sell office supplies now.
As of 11:28 on Tuesday in New York, Staples shares were up 8.58% to $18.61, while Office Depot shares surged 18.94% to $9.07.